Adjustment and Control of Real Estate
The Adjustment and Control of Real Estate (房地产调控 Fáng Dì Chǎn Tiáo Kòng) is a popular phrase when referring to the central government’s efforts to curb skyrocketing housing prices. The government initiated a series of policies throughout 2010 designed to cool the market. It regulated down-payment amounts three times in 2010 in an effort to rein in speculation. According to the latest policy that was issued January 2011, the down payment for the initial purchase of a house should be more than 30 percent of the total price, while down payments for second-house purchases must be at least 60 percent. In addition, the People’s Bank of China raised the basic interest rates for deposits and loans for the first time in three years in an attempt to squash a potential market bubble.
